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Maybe I'm missing something super obvious, or I'm preaching to the choir; but why wouldn't it make sense to eliminate all corporate taxes; but also eliminate ca
by jwally 7y ago
Maybe I'm missing something super obvious, or I'm preaching to the choir; but why wouldn't it make sense to eliminate all corporate taxes; but also eliminate capital-gains-tax-rates?
I'm not sure you'd have a 100% wash, but it feels like it would be close enough that you could re-jigger rates to capture any short-falls (or drop them if you bring in too much).
It seems like it would:
- Eliminate the need for corporate tax firms / accountants
- Reduce the incentives for industrial lobbying
- Encourage hiring
- Enable Businesses to save for "rainy days"
- bryanrasmussen 7y agoI think you might be missing the super obvious that it would take a law to do this thing that would reduce the incentives for industrial lobbying?
- jwally 7y agoSo I shouldn't hold my breath for term limit legislation to pass anytime soon either...? :-)
- MuffinFlavored 7y agoHow would corporations get taxed if you eliminated corporate taxes? You wouldn't want corporations to get taxed on their income/revenue/profits?
- jwally 7y agoInstead of taxing the income twice at lower rates with loopholes (corporate tax rate => capital gains rate) it would only get taxed once, but at a higher rate (marginal tax rate) with relatively fewer shenanigans.
- Youden 7y agoI'm not the OP but it's fairly simple: corporations wouldn't get taxed. Instead, shareholders would be taxed, as they're the ones who own the company and ultimately profit from the company's activities. You could do this by increasing the tax rate on capital gains (dividends are already income if I remember US taxes right).